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The BOM for product A is shown below and data from the inventory records are sho

ID: 461209 • Letter: T

Question

The BOM for product A is shown below and data from the inventory records are shown in the table below. In the master production schedule for product A, the MPS start row calls for 150 units in week 3 and 100 in week 6.

Data Category                             B                      C                      D

Lot-sizing rule L4L FOQ = 300 POQ(P=3weeks)

Lead time                               2 weeks             1 week 1 weeks

Scheduled receipts          NONE 200(in week 3) 200(in week 3)

Beginning (on-hand) 50 200                    0

   inventory

MPS Product A

Week                         1

2

3

4

5

6

Product A

Planned Order Release

Item C   

Week

1

2

3

4

5

6

Gross Requirements

Scheduled Receipts

Projected OH inventory   

Planned Order Receipts

Planned Order Releases

Item D   

Week

1

2

3

4

5

6

Gross Requirements

Scheduled Receipts

Projected OH inventory 0

Planned Order Receipts

Planned Order Releases

Item B =

Week

1

2

3

4

5

6

Gross Requirements

Scheduled Receipts

Projected OH inventory 0

Planned Order Receipts

Planned Order Releases

Comment

MPS Product A

Week                         1

2

3

4

5

6

Product A

Planned Order Release

Explanation / Answer

POR for Item is 150 units in week 3 and 100 units in week 6.

Now the calculation for item C

Given: L4L Tech. LT = 2 weeks, Sch Receipts = None and Inventory = 50 units, Using this information and BOM, the following table is drawn:

Now the calculation for item D,

Given: FOQ = 300, LT = 1week, SR = 200 in week 3 and Inv = 200

Now the calculations for item E,

Given: POQ (P = 3 weeks), LT = 1 week, SR = 200 (in week 3), inventory = 0

Week (Item C) 1 2 3 4 5 6 Gross Requirements 150 100 Sch. Receipts On Hand Inventory(50 units) 50 50 100 100 100 0 Planned Order Receipts Planned order Release 0 0 0 0 0 0